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									Standard Chartered PLC
Pre-close Trading Update

20 June 2007

Standard Chartered PLC will be holding discussions with analysts and
investors ahead of its close period for the half year ending 30 June 2007.
This statement details the information that will be covered in those

The following sections outline Standard Chartered’s progress in the first half
of 2007, including a review of the overall business, an update on the
performance of Consumer Banking and Wholesale Banking, and an update
on the most recent acquisitions. Unless otherwise stated, references to 2006
are made in relation to the first half of the year.


Standard Chartered has continued to perform very strongly, building on the
excellent start to 2007. The Group has very strong income momentum,
especially in Wholesale Banking. We have accelerated investment, whilst still
producing very good double digit working profit and operating profit growth.

The Group has very good double digit income growth in both Consumer
Banking and Wholesale Banking and across almost all geographies.

The Group continues to deliver a strong performance across a wide range of
products and customer segments.

Net interest margins have remained broadly stable.

The Group continues to take a dynamic approach to managing expense
growth. In line with guidance previously given on 27 February and 3 May, we
have stepped up the pace of investment, particularly in Consumer Banking,
and we expect that expense growth will exceed income growth for the first
half of 2007. For the full year, we anticipate that expense growth will be
broadly in line with income growth.

We are comfortable with the asset quality for both businesses.

The integrations of Union Bank and of Hsinchu International Bank are
progressing well with contribution to Group performance in line with

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Business Performance

Consumer Banking

Consumer Banking has delivered strong income growth. On an underlying
basis (excluding the impact of the recent 2006 acquisitions), Consumer
Banking has maintained good income momentum.

Markets such as Other APR, MESA, and Singapore have performed
particularly well with India, Malaysia and Korea also generating double digit
income growth.

In Hong Kong, the rate of income growth has accelerated despite competitive

Wealth Management and SME are both achieving excellent growth across
many geographies, with particularly strong performances in MESA, India,
Korea, Hong Kong, Malaysia and Singapore.

Mortgage income, however, has continued to be affected by rising interest
rates, regulatory constraints and strong competition in a number of key

We have accelerated investment across the franchise, especially in:
distribution (where we have upgraded and added outlets and ATMs); the
Private Bank (which has now been launched in 7 countries); China, where we
launched RMB Consumer Banking following the incorporation of the business
in April; and in India. In line with previous guidance, growth in expenses will
therefore significantly exceed the growth in income in the first half of the year.

Consumer Banking loan impairment has improved slightly on the first half of
2006, in line with expectations. This reflects: the improving situation in
Taiwan, where impairment is moving to more normalised levels; inclusion of
the two most recent acquisitions; and the change in volume, mix and maturity.

The Consumer Banking asset position reflects strong growth in unsecured
products, inclusion of the most recent acquisitions but also pressure on
secured products in some key markets.

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Wholesale Banking

Wholesale Banking continues to demonstrate very strong income momentum,
both overall and on an underlying basis (excluding the impact of the recent
2006 acquisitions), delivering broad based growth in all key client segments
and across multiple products.

Client driven income has performed very strongly, showing high double digit
growth as a result of our successful client centric strategy and an increase in
cross-sell ratios.

The investments made in enhancing Global Markets capabilities have
contributed to strong growth in the Rates and FX client business, Capital
Markets and Corporate Finance businesses. Transaction Banking, especially
Cash Management, continues to benefit from both volume growth and the
rising interest rate environment in many markets.

Investment has been accelerated as Wholesale Banking has: expanded client
coverage and product capabilities (investing in commodity derivative
capability and Transaction Banking); invested in systems infrastructure and
premises as the business continues its rapid expansion; and invested in its
control environment and regulatory reporting infrastructure (improving anti
money laundering processes and continuing investment for Basel).
Notwithstanding this investment programme, Wholesale Banking will deliver
positive jaws for the first half of the year.

Wholesale Banking continues to benefit from the benign credit environment.
The quality of the Wholesale Banking loan book remains excellent. New
impairments remain low, and recoveries and releases continue to be
achieved, albeit at lower levels than in 2006.

Growth in Risk Weighted Assets has strong momentum but is growing more
slowly than client income.


In Korea, overall income growth has been moderate. Good performance in
Consumer Banking income reflects strength in SME and Wealth
Management. Income performance in Wholesale Banking has been weaker,
remaining broadly flat on the second half of 2006. Growth in expenses has
exceeded income growth, in part reflecting a full allocation of Group expenses
as well as continued investment in new products and infrastructure.

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Pakistan and Taiwan

The integration of Union Bank and Standard Chartered operations in Pakistan
is proceeding smoothly, with significant investment in rebranding and
enhancing the branch network. Progress has been particularly strong in
Capital Markets, Lending and SME.

The integration process in Taiwan is at a much earlier stage, but progress is
good and the amalgamation of Hsinchu and Standard Chartered’s existing
business is expected imminently. We remain confident that Hsinchu will be
EPS accretive and deliver double digit ROI in 2008.


In summary, the Group is performing very strongly. Income momentum is
very strong and expense growth remains at high levels as we continue to
make further investment in the franchise. The approach to risk management
remains highly disciplined.

Peter Sands, Group Chief Executive, commented, “It’s been another period of
excellent delivery. We have incorporated our business in China, launched the
Private Bank, and the integration of our acquisitions is going very well. The
pace of growth in both businesses is strong and the credit quality of our loan
portfolios remains robust. The Group is in great shape."

The pre-close conference call, hosted by Richard Meddings, Group Finance
Director, will be webcast live on Standard Chartered's website. To access the
webcast follow this link from 10:30
BST onwards. A recording of the webcast and a podcast will also be
available shortly after the event.

For further information, please contact:

Stephen Atkinson, Head of Investor Relations     +44 (0)20 7280 7245
Tim Baxter, Head of External Communications      +44 (0)20 7457 5573
Ruth Naderer, Head of Investor Relations, Asia Pacific +852 2820 3075

It is possible that this document could or may contain "forward-looking statements" that are based on
current expectations or beliefs, as well as assumptions about future events, and include matters which
are not facts. These forward-looking statements can be identified by the fact that they do not relate only
to historical or current facts. Forward-looking statements often use words such as anticipate, target,
expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar
meaning. Undue reliance should not be placed on any such statements because, by their very nature,
they are subject to known and unknown risks and uncertainties and can be affected by other factors that
could cause actual results, and Standard Chartered's plans and objectives, to differ materially from
those expressed or implied in the forward-looking statements. Any forward-looking statements
contained in this document based on past or current trends and activities of Standard Chartered should
not be taken as a representation that such trends or activities will continue in the future. Any
forward-looking statements speak only as of the date of this document.
Standard Chartered undertakes no obligation to revise or update any forward-looking statement
contained within this document, regardless of whether those statements are affected as a result of new
information, future events or otherwise.

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